Study: Americans Paid 96% of 2025 Tariff Burden, Impact on Inflation and Prices

Tariff Burden and Revenue

• 📊 A study by economists at the Kiel Institute for the World Economy reveals that 96% of all tariff burden was passed on to American importers.
• 💰 Out of $200 billion in US tariff revenue collected last year, Americans paid approximately $192 billion.
• 🌍 The remaining 4% ($8 billion) came from foreign exporters experiencing reduced profits on tariffed items.

Impact on Exporters and Trade Volume

• 📉 Exporters are not changing prices to offset tariffs; instead, the volume of exported items to the US has dropped.
• 📈 For example, shipments from India, facing a 50% tariff rate, fell by up to 24% compared to countries without such taxes.

Consumer Prices and Inflation

• ⚠️ While importers and manufacturers have largely absorbed tariff costs, some increases in average prices have occurred.
• 📈 A Harvard Business School study indicated tariffs increased inflation by 0.7% since March, with imported goods becoming about 6% more expensive in 2024.
• 🛒 Amazon CEO Andy Jassy noted that President Trump's tariffs are beginning to affect the prices of some items as sellers consider how to manage added costs.

Legal Challenges to Tariffs

• ⚖️ The Supreme Court is expected to rule soon on a case brought by small businesses challenging the legality of President Trump's tariffs.
• 🏛️ Some adjustments to US tariff policy could potentially be undone by this ruling.